The whipsaw in this market shows a nation poised in faith and fear that something will save the situation. Traders were able to take buys to the new call trade, and we'll list another one today, as we believe we'll shortly bottom again, and begin an upsurge. Study our Dow projections carefully.
With the House passing the stimulus bill there will be an 810 billion jolt to the economy; Floyd predicts more than 2 trillion more actually after a "bad bank" is set up. The concept is good economics. Separate all that is bad to one bank, and have all the banks come clean on the derivatives and accounting games, that never end, as foreclosures rise, and home values plummet. We believe the market will have a positive reaction to this, good or bad, around whipsaw.
We experienced this yesterday. As you study our Dow projections in I'm leaving a historical dating of each time these support and resistance lines have been met. The wild card is another sell off to the November lows at 7700.
We continue to see a trade range building around our Dow projections, with repeated struggles at each support and resistance line. The market needs a catalyst in "news" or "action" to trigger fear or greed.
What we do now is trade softly and slowly, pick only one of the two calls listed, and buy for another upside run.
1 comment:
I like approach of doing trade softly and slowly. There should be a discipline and emotions have to controlled when doing trade. This is the key to become a successful trader.
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